Wednesday, February 22, 2017

Sooner or
later, North Korea will create a major disaster for the world.

The assassination
of Kim Jong Nam shows that China does not have insider information in North
Korea.

It came as
much as a surprise to China as the rest of the world.

The testing
of the missile so near to China is another indication that North Korea no
longer views China as a friend.

Perhaps
North Korea has the ambition to start a war and conquer as much territory as
possible.

Fat boy
dictator Kim Jong-Un has apparently killed off many North Koreans who had a
warm relationship with China.

After the
execution of his uncle, Kim Jong-Un has reportedly executed more than 300
senior officials for offences such as bad attitude.

There is no
doubt that situation will escalate.

Fat boy Kim
Jong-Un is still young, and appears war-ready.

If war
erupts, many people will die. North
Korea will not hesitate to use its nuclear weapon.

If China or
other countries manage to overthrow Kim Jong-Un and installs a new ruler in
North Korea, many North Koreans will die as a result of the crash between those
who are loyal to Kim Jong-Un and those who want him dead.

No matter what
happens, world peace will be disrupted.

The question
is for how long and how devastating the situation will be.

There is also
no doubt that gold price will reach record high and stock markets, especially
in Asia, will crash all the way down.

Monday, February 13, 2017

Everyone
knows about the saying that real estate investment is about location, location,
location.

From my
personal observation, I say that real estate investment is more about politics
than location.

The first
golden rule about investing, any form of investing, must be “never fight the
government”.

You cannot
win unless you have the power to overturn the current administration and
install your puppet to head the new administration.

If you are
so powerful, you must be rich enough to buy your way into anything.

For the rest
of us, we have to go along with the government, and make decisions to benefit
ourselves.

If the
government has sounded out that the real estate bubble is forming, and it will
take action to protect the interest of the ordinary folks, that is not the time
to buy.

Even if the
location is very good, you should wait till the correction is well underway.

The wave of
protectionism sweeping across the world will have an impact on housing price,
and rental yield.

Without foreigners
to come to work and rent a place, the rental yield is low. When rental yield is low, the housing price
will be low.

The effect
of Brexit is not fully known at the moment, since UK has not triggered Brexit.

The likely
outcome is that jobs will go to Europe, and immigrants and skilled foreign
workers will leave UK, and that will lead to lower pounds, higher inflation,
lower rental yield, and lower real estate price.

It is just
a matter of how bad it will be. The outcome
will depend on how the government will spend to boost jobs.